PHNO-HL: IMF LOAN OK, BUT CREDIT GOES TO GMA ADMIN / MIRIAM DEFENDS IMF LOAN

IMF LOAN OK, BUT CREDIT GOES TO GMA ADMIN / MIRIAM DEFENDS
IMF LOAN

[PHOTO -
OPPOSITION REPRESENTATIVE DANILO SUAREZ]
MANILA, JUNE 29, 2012 (GMA NEWS)
ANDREO CALONZO, GMA NEWS - House Minority Leader Danilo Suarez finds
nothing wrong with the government's move to pledge a $1 billion loan to the
International Monetary Fund, but wants former President Gloria Macapagal-Arroyo
to be credited for the country's capacity to lend money to foreign financial
institutions.
Suarez said at a press briefing on Wednesday that the Bangko Sentral ng
Pilipinas' decision to lend money to the IMF is only "standard banking
practice."
"Such a loan will not reduce our international reserves; only reallocate them
from investments to loans. Most importantly, the BSP is required by law to
invest the country's reserves only to foreign-denominated assets," he said.
The Philippine government announced last week that it pledged $1 billion to
the IMF to help address the debt crisis in Europe.
The decision was met with opposition by various sectors, with Bayan Muna
party-list Rep. Teodoro Casiño even proposing that the BSP be permanently banned
from giving out foreign loans.
Malacañang however stood firm on its plan to give out the IMF loan, saying it
can indirectly help overseas Filipino workers in economically troubled states.

Aquino shouldn't claim credit
While favoring the BSP's move, Suarez said President Benigno Aquino III
should not claim credit for the country's capacity to give out foreign loans.

The opposition leader said it was during Mrs. Arroyo's incumbency that the
Philippines was able to prepay the country's debts in full to the IMF.
"We have nothing against putting money to the IMF, but we have to give credit
to the previous administration," he said.
He added that it was the former President who drove the country's economy
into "unprecendented" growth levels, which he said improved the country's
external position.
Suarez added that Mrs. Arroyo herself, whom he visited three weeks ago at the
Veterans Memorial Medical Center (VMMC) in Quezon City, seem to be fine with the
government's decision to lend $1 billion to the IMF.
The former President, who also currently sits as Pampanga representative, is
presently detained at the government hospital for poll sabotage charges.
Suarez is the co-chairman of the Lakas-CMD of which Arroyo is the chairman
emeritus. —DVM/TJD, GMA News
FROM ABS-CBN
Miriam defends $1B BSP pledge to IMF by Ira
Pedrasa, ABS-CBNnews.com Posted at 06/28/2012 4:01 PM | Updated as of 06/28/2012
4:01 PM
MANILA, Philippines - Senator Miriam Defensor Santiago on Thursday
defended the Bangko Sentral ng Pilipinas' (BSP) move to lend US$1 billion to the
International Monetary Fund (IMF) to help European countries deep in debt.
In a speech before the members of the Credit Management Association of the
Philippines, Santiago said the central bank is mandated to maintain and grow the
country's international reserves.
In fact, she said the BSP is mandated to invest the money "in accordance with
the investment guideline that only investment-grade and highly-rated financial
instruments of non-residents should qualify."
Santiago said this has no impact whatsoever on the national government's
budget, which is a different matter altogether.
"Why is the BSP lending to the IMF, when over 38% of the Philippine
population are living below the poverty line? The answer is that it is the
national government and not the BSP which is directly responsible for addressing
poverty with resources coming from the budget," she said.
She said the BSP loan to the IMF is already indirectly helping the poor, in
particular, overseas Filipino workers.
So why not just use the money to pay off the country's own debts?
"Again, the answer is the legal provision that our international reserves
follow an investment guideline mandating that only investment-grade and
highly-rated financial instruments of non-residents should qualify. Therefore,
the BSP cannot lend part of its reserves to the national government to retire
Philippine public debt, and the law prohibits the BSP from engaging in
development banking or finance," she explained.
Santiago said President Benigno Aquino III need not get Congressional
approval for the IMF loan.
"At present, there is no such law that requires the President to consult
Congress or the Senate. If the Senate wishes to participate in the foreign loan
process, then it should pass a bill to that effect," she said.
Many leftist groups have criticized the BSP's pledge to the IMF, saying it
would be better if the money is used to help poor Filipinos.


Chief News Editor: Sol Jose Vanzi
© Copyright, 2012 by PHILIPPINE HEADLINE NEWS ONLINE
All
rights reserved




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